In the Event Identification Component of the COSO ERM Framework,management

question 14

Multiple Choice

In the event identification component of the COSO ERM framework,management must classify events into which of the following?

• A)Weaknesses and vulnerabilities.
• B)Risks and opportunities.
• C)Risks and rewards.
• D)Controls and vulnerabilities.

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Definitions:

Risk

A prediction concerning potential loss based on known and unknown factors.

Hazard

A potential source of harm or adverse health effect on a person or persons.

Shared-Property Ownership

An arrangement where two or more parties hold title to a property together, sharing rights and responsibilities.

Tenancy

A legal arrangement whereby an individual or entity occupies land or property rented from another, typically for a specified period under a lease.